Dana Gets Okay for Two North Sea Field Development Programs

Dana Petroleum has commenced its gas reinjection project at the Banff field in the UK North Sea and the F16-E gas field development project offshore the Netherlands. This follows the unanimous approval of the co-venturers in both projects and the receipt of consent from the UK Secretary of State for Trade and Industry in respect of the Banff field.

The Banff gas reinjection project involves a reconfiguration of the Banff wells and floating production facilities to allow gas produced from the field to be reinjected into the reservoir to increase oil recovery. The current stock of three producing wells and two water injection wells will be converted to four oil production wells and one gas injection well, thus altering the principal drive mechanism in the field from water injection to gravity drainage supported by gas injection. This process is forecast to increase remaining Banff field oil reserves by approximately 20 to 25 million barrels (2.5 to 3.1 million barrels net to Dana) and increase field life by up to eight years. The necessary work will be carried out over the next few months with the objective of commencing gas reinjection in the third quarter of 2004. The co-venturers in the Banff field are Dana (12.4%) and operator CNR International (87.6%).

The F16-E gas field development follows the successful F16-3 and E18a-4 exploration and appraisal wells drilled in 2001. The development will involve a total of 5 wells producing via a new steel platform and pipeline tied into the NGT trunk pipeline to Uithuizen in the Netherlands. First gas is targeted for January 2006 at rates of approximately 150 million cubic feet per day. Proven and probable F16-E field reserves are currently estimated at around 450 billion cubic feet of gas (5.4 billion cubic feet net to Dana). The co-venturers in the F16-E field development are Dana (1.2%), operator Wintershall (32.6%), EBN (41.5%), Gaz de France (20.5%), CLAM (2.3%) and Goal Petroleum (1.9%).